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Essel Infra may bag the national highway development project for a 125-km stretch between Shivpuri and Gwalior in Madhya Pradesh.
The firm emerged as the best bidder on Tuesday for widening and operating the highway for a concession period of 30 years. It will be awarded the project after verification by National Highways Authority of India (NHAI).
Essel Infra offered an annual premium of Rs 66.6 crore to the NHAI for the first year of operations. The premium income will increase by five per cent in each subsequent year.
The company will have to design, build, finance and operate the highway stretch during the concession period of 30 years. In return, it can collect the toll from vehicles using the highway.
The total project cost is Rs 1,055 crore, according to Government estimates. The actual cost of construction may vary. But, the cost will have to be borne by the concessionaire, according to the contract terms.
NHAI has set a target to award 7,300 km of national highway development work in current fiscal, the highest ever so far.
In earlier fiscals, the length of highway development work awarded by NHAI has been lower – 5059 km in 2010-11, 3360 km in 2009-10, 643 km in 2008-09, 1234 km in 2007-08, 1739 km in 2006-07 and 4738 km in 2005-06.
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